I have just seen a client and assisted her in applying for DLA. She seems to meet the conditions for at least middle rate care - poss higher.

She currently lives with a friend in his Local Authority Flat. Her friend gets Pension credit and the client gets IS. This at present is not a commercial arrangement as the client does not pay anything towards the rent etc.

Is it possible for the friend to turn this into a commercial arrangement if the client is awarded middle rate care or is this taking advantage of the benefit system?

The friend does care for the client so the other option is for him to claim carers and get the premium on his PC.


Any advice would be appreciated.

Thank you,

Laura

Wed 02-Jun-10 10:53 AM by bensup

Has he checked whether his tenancy allows him him to sublet?

Also any income over £20 pw he gets from a boarder/tenant will be classed as income for his pension credit.

The reason I am wondering about this is if it is commercial then the client can get the severe disability premium on the Income support.

I would advise the clients to check with the landlord regarding subletting but the LA usually allows such situations

The client is aware of the PC reduction issue.

To set up an agreement to let, whether on a commercial basis or otherwise, to get the SDP in Income Support is immaterial for HB purposes. For HB purposes HB would not be payable if the agreement was not on a commercial basis or is designed to take advantage of the HB scheme. Having the SDP included in the applicable amount for HB is a factor, along with all other relevant factors, that can be legitimately looked at by the LA in reaching its determination on the matter.

In a situation like this where commercial considerations do not (on the face of your post) seem to be the driving force behind creating the lease, extreme care should be exercised. You should read the commentary on this point to reg 9 of the HB regs (if you have not already done so) before advising your client further